PUBLIC NOTICE OF SALE
On Wednesday April 26, 2023, at 10:00 a.m. at the Humboldt Superior Court, Courtroom 4, 825 5th Street, Eureka, CA 95501, all assets of Humboldt Health Care LLC, Emerald Family Farms LLC, and Emerald Family LLC (collectively, the “Business”) will be sold by way of an auction. The assets of the Business include:
The opening bid will be $3,500,000 and successive bids will increase in $500,000 increments until a winning bidder is determined. At least 2 business days before the auction, bidders must be prequalified by providing Court Receiver Kevin Singer: (a) a signed copy of the rules for auction sale hearing; (b) a cashier’s check in the amount of $100,000 as a deposit to bid; and (c) proof of funds as to the bidder’s highest bid amount. Bidders who are not the winning bidder will receive their $100,000 deposit back at the end of the auction. Prequalified bidders may appear in person or remotely via Zoom arranged through the Court Receiver.
To prequalify to bid call Scott Yahraus at (310) 552-9064.
This is being sold by way of court ordered receivership and is subject to court confirmation.
1) To participate in the auction sale, at least two (2) business days before the hearing, bidders must present Superior Court Receiver Kevin Singer (the “Receiver”): (a) a signed copy of these Rules for Auction Sale Hearing; (b) a
cashier’s check in the amount of $100,000.00 made out to Kevin Singer, Receiver; and (c) proof of funds in an amount equal to or greater than the highest amount the bidder is willing to bid. Bidders that do not present these items at least two (2) business days prior to the hearing may not be allowed to participate.
2) The Receiver plans to conduct the overbid procedure remotely by appearing via Zoom. Bidders may appear at and participate in the overbidding either in person or remotely via Zoom or telephone. All unsuccessful bidders will receive their $100,000.00 deposit checks back at the conclusion of the hearing.
3) The assets are being sold “as is” and “with all faults” based upon the condition of the assets, with no warranties except for transfer of title and all other warranties and covenants specified in Article VII of that certain Purchase and Sale Agreement (the “PSA”) for the assets.
4) Any bids are to be on the terms and conditions as the terms of the PSA. The bidder with the highest offer accepted must sign and agree to the PSA with the same terms. If the Court-confirmed buyer(s) (“Buyer”) cannot close the transaction pursuant to the terms of the PSA, through no fault of the Receiver, the $100,000.00 deposit (otherwise to be applied toward the purchase price) shall be non-refundable and forfeited to the Receiver.
5) The first bid will be $3,500,000 pursuant to the bid chart below with bidding increments of $500,000.00 increases thereafter. Then, the bids will continue to increase by increments listed in the bid chart until a winner/Buyer is determined. 1 There is an open issue as to the Commercial Cannabis Activity Permit that allowed Emerald Family Farms, LLC to obtain a California processing license, which permit the Receiver is still working to resolve in order for all local licenses and permits to be transferred as part of the proposed sale.
Bid No. Bid Amount
Original Bid $3,500,000
1st Overbid $4,000,000
2nd Overbid $4,500,000
3rd Overbid $5,000,000
4th Overbid $5,500,000
5th Overbid $6,000,000
6th Overbid $6,500,000
7th Overbid $7,000,000
8th Overbid $7,500,000
9th Overbid $8,000,000
10th Overbid $8,500,000
11th Overbid $9,000,000
12th Overbid $9,500,000
13th Overbid $10,000,000
14th Overbid $10,500,000
15th Overbid $11,000,000
6) Buyer has reviewed the terms of the PSA. Buyer will also execute the PSA immediately following the Court Auction Hearing if confirmed by the Court as the buyer of the assets. The Closing Date set forth in the PSA shall not be delayed or stayed due to any appeal rights by the parties in the Case.
7) The Court presiding over the Case shall retain jurisdiction over any legal disputes relating to or arising out of the Court Auction Hearing and/or sale of the assets between Buyer and the Receiver. Buyer waives any right to a jury trial over any legal disputes relating to or arising out of the Court Auction Hearing and/or sale of the assets, and agrees to any disputes being decided by way of summary proceedings through motion practice. The Court presiding over the Case reserves the right to: amend any of the rules pertaining to the process; cancel the Court Auction Hearing; or cancel the PSA in its entirety.
Additional Information About The Businesses
The Cultivation Farms has been in operation since 2016, and the companies have specifically been in operation at the Willow Creek site since 2017. This company has the capabilities of becoming fully vertically integrated. There are two properties included in the purchase of this company. The property encompasses a total area of approximately 52 acres including the vacant parcel (10.1 acres).The approximate 41.8 acre farm in Willow Creek California and a 15,000 SqFt warehouse in Arcata California, Humboldt County. Cannabis that is produced in Humboldt County is considered superior and world famous, is entitled to strong product branding protections, and commands a higher price than cannabis produced in Trinity County. The taxes are higher in Trinity County. The property is located directly north of the commercial district of the community of Willow Creek and surrounded by agricultural land and rural residential and commercial properties. The approximate 41.8 acre site is currently developed with two structures, including a 20,300 square foot, metal commercial building; an approximate 890 square foot office. The Trinity River is located on the northern portion of the site and the confluence of Willow Creek and the Trinity River is located adjacent to the northwest corner of the property. There are a few incidental security perks with this location. It is located less than a mile away from the Humboldt Police Department and Sheriff’s Dispatch Office.
Although obtaining cannabis licenses in Humboldt County has become easier, it remains one of the most difficult locations in California to navigate and procure multiple licenses. The assets for sale include the existing licenses and a history of approvals for expansion. The Willow Creek cannabis facility has available utilities (water, power, septic). The Willow Creek cannabis facility has optimal zoning (Heaving Industrial and Agricultural) which allows for the “stacking” of multiple cannabis uses and licenses on one site.The Willow Creek property’s current combination of approved cannabis entitlements make it the largest cannabis facility in Humboldt County, and one of the largest cannabis facilities in the State of California. It is unlikely that Humboldt County will approve similar large-scale entitlements in the future. The property encompasses a total area of approximate 41.8 acre site including the vacant parcel (10.1 acres). There are 2 buildings and 19 storage containers located on site. A 890 sq ft Distribution office and a 20,300 sq ft metal building. Located inside of the metal building is the “manufacturing lab”. This lab is fully equipped with extraction equipment for BHO extraction. The lab has been reinforced with a 3 hour fire wall and has a plethora of power. This property comes with 57 Gregerson Greenhouse kits. In order to erect these kits the potential buyer would need to amend the current condition of the use permit and apply with the state for additional cultivation permits, in order to build out the Gregerson Greenhouses. This property comes fully permitted for cultivation. With an incredible ability for expansion the new purchaser may re-apply for an expanded cultivation footprint of eight acres as previously approved by Humboldt County and California State Regulators. There is also a prior approval for one acre of nursery space, bringing total acreage to nine of outdoor/mixed light cultivation, extraction (BHO, CO2, and ethanol), distribution, processing, wholesale nursery and transportation. All Permits have been renewed and are in good standing, 15 Small Cultivation Permits, 1 Medium Cultivation Permit, 1 Nursery Permit, 1 Manufacturing 7, Transport and Distribution.
The Arcata Property allows for finished goods and products from the Willow Creek Property to be distributed—achieving highly desirable vertical integration. The distribution function of the Arcata Property has existing infrastructure that includes 2,000 square feet of cold storage and transportation vehicles. The location allows for post-processing and distribution services to any of the over 1,500 licenses cannabis farmers and product producers in the area. The warehouse square footage can effectively be doubled with the construction of a second story. It already has designated areas for intake and product quarantine, plus equipment to process, trim, sort, and package a variety of different types of flower and concentrate products. The Arcata warehouse has permits for Manufacturing 6, Transportation and Distribution. This warehouse is fully equipped with packaging equipment, supplies, furniture, 6 storage containers and 4 transport vehicles. This business is 100% ready for operations. The city of Arcata will allow for an expansion of the permits. The recommendation from the city for vertical integration is to convert this location into a micro business. The micro business would have to include three of the four permitting options.
LIVE AUCTION APRIL 26TH @ at 10:00 a.m. at the Humboldt Superior Court, Courtroom 4, 825 5th Street, Eureka, CA 95501
Property #1 Arcata, CA
(1) Manufacturing Type 6
(1) Transport and Distribution
Property #2 Willow Creek, CA
Property #3 Willow Creek, CA
Asking Price: $3,500,000.00
Must sign an NDA/Waiver and provide Proof of Financials before any other detailed information is released, along with the company’s location. This listing is Fully Exclusive only by Green Life Business Group, Inc.
Green Life Business Group, Inc DRE CA LIC# 02061374
Tom Milks, DRE CA LIC# 02064305
Drew Mathews, DRE CA LIC #02091143
If you have any questions call Tom (619) 972-5952 or Drew (619) 653-0483
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